New York-listed global investment manager Blackrock has confirmed it is acquiring independently managed private equity real estate firm MGPA.
New York-listed global investment manager Blackrock has confirmed it is acquiring independently managed private equity real estate firm MGPA.
The combination will create a create a $25 bn (€19.4 bn) global real estate investment manager. The financial details of the transaction were not disclosed.
Blackrock said MGPA adds extensive Asian and European capabilities to BlackRock’s strong US and UK real estate investment presence with investment teams in the world’s top six markets, which represent 75% of the commercial real estate investable 'universe'.
'Today’s agreement advances BlackRock’s growth strategy in Asia-Pacific and Europe, where we are seeking to enhance our local offerings and build on the firm’s real estate experience,' said Jack Chandler, global head of real estate for Blackrock. 'It further strengthens our ability to offer clients an unrivalled set of solutions to the challenges of a low-return, high volatility environment, including access to MGPA’s top-performing investment teams and exceptional capabilities in key markets.'
MGPA is focused on real estate funds management, co-investments and separate account mandates for institutional investors, offering products across the risk/return spectrum, including development, and had $12 bn in AUM at end-March 2013.
The transaction is expected to close in the third quarter of 2013, subject to customary regulatory approvals and closing conditions.
MGPA was advised by Berkshire Capital Securities.
